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SBX3 5	Senate Bill, 3rd Ext. Session	- INTRODUCED
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BILL NUMBER: SBX3 5	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Peace

                        JANUARY 18, 2002

   An act to amend Sections 33050, 42238.12, 42238.44, 44506, 51725,
51727, and 51729 of, and to add Sections 44506.5 and 52055.660 to,
the Education Code, and to repeal Section 33 of Chapter 891 of the
Statutes of 2001, relating to education.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 5, as introduced, Peace.  Education.
   (1) Existing law requires the county superintendent of schools to
adjust the total revenue limit for each school district in the
jurisdiction of the county superintendent of schools by the amount of
increased or decreased employer contributions to the Public
Employees' Retirement System (PERS) and sets forth a method for
calculating that amount for the 1995-96 fiscal year and each fiscal
year thereafter.  Existing law provides that certain funding
appropriated in the Budget Act of 2001 is for the purpose of limiting
reductions to revenue limits made for purposes of the decreased
employer contributions to PERS and sets forth parameters for
apportionment reductions in the 2002-03 fiscal year.
   This bill would delete the provision that certain funding
appropriated in the Budget Act of 2001 is for the purpose of limiting
reductions to revenue limits.  The bill would make the limitations
to revenue limit reductions applicable to fiscal years in which
funding is appropriated for that purpose and would change the
calculation made for this purpose for the San Francisco Unified
School District.  The bill would make the parameters for
apportionment reductions in the 2002-03 fiscal year applicable
instead to the fiscal year subsequent to the fiscal year in which an
appropriation is made for the purpose of limiting reductions to
revenue limits.
   (2) Existing law requires the Superintendent of Public Instruction
to compute an equalization adjustment, for the 2001-02 fiscal year,
for each school district so that no district's prior year base
revenue limit per unit of average daily attendance is less than the
prior year base revenue limit per unit of average daily attendance
above which fall not more than 10% of the total statewide units of
average daily attendance for the appropriate size and type of
district.  Existing law appropriates $40,000,000 from the Proposition
98 Reversion Account for purposes of funding the equalization
adjustment for the 2001-02 fiscal year.
   This bill would repeal the $40,000,000 appropriation and would
require the equalization adjustment to be made for any fiscal year in
which an appropriation is made through the annual Budget Act for
that purpose.
   (3) Existing law establishes the California Peer Assistance and
Review Program for Teachers and sets forth a formula for determining
the amount of funding the Superintendent of Public Instruction is
required to apportion to each participating school district.
Existing law requires the Superintendent of Public Instruction to use
any funds unallocated at the end of any fiscal year to increase the
base funding rate for the succeeding fiscal year.
   This bill would require the Superintendent of Public Instruction
to reduce the amount required to be apportioned to school districts
by 50% and would require the Superintendent of Public Instruction to
distribute any funds unallocated at the end of any fiscal year to
school districts that make certain certifications to the State Board
of Education.  The bill would prohibit the State Board of Education
from waiving any provisions of the program.
   (4) Existing law establishes the High-Tech High School Grant
Program to provide 10 one-time grants for the purposes of
establishing new high-tech high schools.  Existing law requires the
grants to be awarded in 2 phases. Existing law repeals the program on
January 1, 2003.
   This bill would reduce the number of grants to 5 and would
eliminate the second phase of the program.  The total amount of a
grant would be awarded over a 2-year period.  The bill would require
the Superintendent of Public Instruction to report to the Legislature
on the status of the program by May 1, 2003, and would extend the
repeal of the program until January 1, 2004.
   (5) Existing law establishes the High Priority Schools Grant
Program for Low Performing Schools within the Public Schools
Accountability Act of 1999 with priority for participation being
given to lowest ranked schools. Existing law requires the
Superintendent of Public Instruction to allocate $200 per pupil to
participating schools for implementation of their school action
plans, as specified.
   This bill would specify that the program will be implemented only
if the annual Budget Act contains an appropriation for this purpose.

   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 33050 of the Education Code is amended to read:

   33050.  (a) The governing board of a school district or a county
board of education, on a districtwide or countywide basis or on
behalf of one or more of its schools or programs, after a public
hearing on the matter, may request the State Board of Education to
waive all or part of any section of this code or any regulation
adopted by the State Board of Education that implements a provision
of this code that may be waived, except:
   (1) Article 1 (commencing with Section 15700) and Article 2
(commencing with Section 15780) of Chapter 4 of Part 10.
   (2) Chapter 6 (commencing with Section 16000) of Part 10.
   (3) Chapter 12 (commencing with Section 17000), Chapter 12.5
(commencing with Section 17070.10), and Chapter 14 (commencing with
Section 17085) of Part 10.
   (4) Part 13 (commencing with Section 22000).
   (5) Section 35735.1.
   (6) Paragraph (8) of subdivision (a) of Section 37220.
   (7) The following provisions of Part 10.5 (commencing with Section
17211):
   (A) Chapter 1 (commencing with Section 17211).
   (B) Article 1 (commencing with Section 17251) to Article 6
(commencing with Section 17365), inclusive, of Chapter 3.
   (C) Sections 17416 to 17429, inclusive; Sections 17459 and 17462
and subdivision (a) of Section 17464; and Sections 17582 to 17592,
inclusive.
   (8) The following provisions of Part 24 (commencing with Section
41000):
   (A) Sections 41000 to 41360, inclusive.
   (B) Sections 41420 to 41423, inclusive.
   (C) Sections 41600 to 41866, inclusive.
   (D) Sections 41920 to 42911, inclusive.
   (9) <em> Article 4.5 (commencing with Section 44500) of Chapter 3
of Part 25.
   (10) </em> Article 3 (commencing with Section 44930) of Chapter 4
of Part 25 and regulations in Title 5 of the California Code of
Regulations adopted pursuant to Article 3 (commencing with Section
44930) of Chapter 4 of Part 25.  <strike>
   (10) </strike> <em>
   (11) </em> Part 26 (commencing with Section 46000).  <strike>
   (11) </strike> <em>
   (12) </em> Chapter 6 (commencing with Section 48900) and Chapter
6.5 (commencing with Section 49060) of Part 27.  <strike>
   (12) </strike> <em>
   (13) </em> Section 51513.  <strike>
   (13) </strike> <em>
   (14) </em> Chapter 6.10 (commencing with Section 52120) of Part
28, relating to class size reduction.  <strike>
   (14) </strike> <em>
   (15) </em> Section 52163.  <strike>
   (15) </strike> <em>
   (16) </em> The identification and assessment criteria relating to
any categorical aid program, including Sections 52164.1 and 52164.6.
<strike>
   (16) </strike> <em>
   (17) </em> Sections 52165, 52166, and 52178.  <strike>
   (17) </strike> <em>
   (18) </em> Article 3 (commencing with Section 52850) of Chapter 12
of Part 28.  <strike>
   (18) </strike> <em>
   (19) </em> Section 56364.1, except that this restriction shall not
prohibit the State Board of Education from approving any waiver of
Section 56364 or Section 56364.2, as applicable, relating to full
inclusion.  <strike>
   (19) </strike> <em>
   (20) </em> Article 4 (commencing with Section 60640) of Chapter 5
of Part 33, relating to the STAR Program, and any other provisions of
Chapter 5 (commencing with Section 60600) of Part 33 that establish
requirements for the STAR Program.
   (b) Any waiver of provisions related to the programs identified in
Section 52851 shall be granted only pursuant to Article 3
(commencing with Section 52850) of Chapter 12 of Part 28.
   (c) The waiver of an advisory committee required by law shall be
granted only pursuant to Article 4 (commencing with Section 52870) of
Chapter 12 of Part 28.
   (d) Any request for a waiver submitted by the governing board of a
school district or a county board of education pursuant to
subdivision (a) shall include a written statement as to both of the
following:
   (1) Whether the exclusive representative of employees, if any, as
provided in Chapter 10.7 (commencing with Section 3540) of Division 4
of Title 1 of the Government Code, participated in the development
of the waiver.
   (2) The exclusive representative's position regarding the waiver.

   (e) Any request for a waiver submitted pursuant to subdivision (a)
relating to a regional occupational center or program established
pursuant to Article 1 (commencing with Section 52300) of Chapter 9 of
Part 28, that is operated by a joint powers entity established
pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of
Title 1 of the Government Code, shall be submitted as a joint waiver
request for each participating school district and shall meet both
of the following conditions:
   (1) Each joint waiver request shall comply with all of the
requirements of this article.
   (2) The submission of a joint waiver request shall be approved by
a unanimous vote of the governing board of the joint powers agency.
   (f) The governing board of any school district requesting a waiver
under this section of any provision of Article 5 (commencing with
Section 39390) of Chapter 3 of Part 23 shall provide written notice
of any public hearing it conducted pursuant to subdivision (a), at
least 30 days prior to the hearing, to each public agency identified
under Section 39394.
  SEC. 2.  Section 42238.12 of the Education Code is amended to read:

   42238.12.  (a) For the 1995-96 fiscal year and each fiscal year
thereafter, the county superintendent of schools shall adjust the
total revenue limit for each school district in the jurisdiction of
the county superintendent of schools by the amount of increased or
decreased employer contributions to the Public Employees' Retirement
System resulting from the enactment of Chapter 330 of the Statutes of
1982, adjusted for any changes in those contributions resulting from
subsequent changes in employer contribution rates, excluding rate
changes due to the direct transfer of the state-mandated portion of
the employer contributions to the Public Employees' Retirement
System, through the current fiscal year.  The adjustment shall be
calculated for each school district, as follows:
   (1) (A) Determine the amount of employer contributions that would
have been made in the current fiscal year if the applicable Public
Employees' Retirement System employer contribution rate in effect
immediately prior to the enactment of Chapter 330 of the Statutes of
1982 were in effect during the current fiscal year.
   (B) For the purposes of this calculation, no school district shall
have a contribution rate higher than 13.020 percent.
   (2) Determine the actual amount of employer contributions made to
the Public Employees' Retirement System in the current fiscal year.
   (3) If the amount determined in paragraph (1) for a school
district is greater than the amount determined in paragraph (2), the
total revenue limit computed for that school district shall be
decreased by the amount of the difference between those paragraphs;
or, if the amount determined in paragraph (1) for a school district
is less than the amount determined in paragraph (2), the total
revenue limit for that school district shall be increased by the
amount of the difference between those paragraphs.
   (4) For the purpose of this section, employer contributions to the
Public Employees' Retirement System for any of the following
positions shall be excluded from the calculation specified above:
   (A) Positions or portions of positions supported by federal funds
that are subject to supplanting restrictions.
   (B) Positions supported by funds received pursuant to Section
42243.6.
   (C) Positions supported, to the extent of employers contributions
not exceeding twenty-five thousand dollars ($25,000) by any single
educational agency, from a non-General Fund revenue source determined
to be properly excludable from this section by the Superintendent of
Public Instruction with the approval of the Director of Finance.
   (5) For accounting purposes, any reduction to district revenue
limits made by this provision may be reflected as an expenditure from
appropriate sources of revenue as directed by the Superintendent of
Public Instruction.
   (6) The amount of the increase or decrease to the revenue limits
of school districts computed pursuant to paragraph (3) for the
1995-96 fiscal year or any fiscal year thereafter shall not be
adjusted by the deficit factor applied to the revenue limit of each
school district pursuant to Section 42238.145.
   (b) Funding <strike> appropriated by Provision 35 of Item 6110-485
of Section 2.00 of the Budget Act of 2001 is </strike> <em> for any
fiscal year that is appropriated through the annual Budget Act </em>
for the purpose of limiting the reductions to revenue limits
calculated pursuant to this section and to Section 2558 <strike> for
the 2001-02 fiscal year.  Funding from this appropriation </strike>
shall be allocated in the following manner:
   (1) Each school district and county office of education subject to
a reduced apportionment pursuant to this section or to Section 2558
shall receive a share of the amount described in paragraph (3) that
is proportionate to the reduction in their apportionment pursuant to
this section or to Section 2558 for <strike> the 2001-02 </strike>
<em> that </em> fiscal year as compared to the statewide total
reduction that would occur absent this paragraph.
   (2) <strike> For the 2001-02 fiscal year, in </strike> <em> In
</em> lieu of the alternative calculation authorized by paragraph
(1), San Francisco Unified School District shall receive an amount
<strike> equal to five dollars and 57 cents ($5.57) multiplied by its
second principal apportionment average daily attendance for the
2001-02 fiscal year. </strike> <em> calculated as follows, for any
fiscal year in which an appropriation is made pursuant to subdivision
(b):
   (A) Divide the district's average daily attendance, as reported at
the second principal apportionment, by the statewide total average
daily attendance reported by school districts and county offices of
education at the second principal apportionment.
   (B) Multiply the quotient calculated in subparagraph (A) by the
amount appropriated pursuant to subdivision (b).
   (C) The product calculated pursuant to subparagraph (B) is the
district's share of the amount apportioned pursuant to subdivision
(b). </em>
   (3) Notwithstanding any other provision of law, total allocations
pursuant to this subdivision shall not exceed <strike> thirty-five
million dollars ($35,000,000) </strike> <em> the amount appropriated
in the annual Budget Act </em> .
   (c) For the <strike> 2002-03 </strike> fiscal year <em> subsequent
to the fiscal year in which an appropriation is made pursuant to
subdivision (b) </em> and each fiscal year thereafter, apportionment
reductions pursuant to this section and to Section 2558 shall be
limited as follows:
   (1) Each school district and county office of education subject to
a reduced apportionment pursuant to this section or to Section 2558
shall receive a share of the amount described in paragraph (3) that
is proportionate to the reduction in their apportionment pursuant to
this section or to Section 2558 for <strike> the 2002-03 </strike>
<em> that </em> fiscal year as compared to the statewide total
reduction as would occur absent this paragraph.
   (2) <strike> For the 2002-03 fiscal year and each fiscal year
thereafter, in </strike> <em> In </em> lieu of the alternative
calculation authorized by paragraph (1), the San Francisco Unified
School District shall receive funding equal to the amount of funding
per unit of average daily attendance specified in paragraph (2) of
subdivision (b) as increased annually by cost-of-living adjustments
specified in Section 42238.1, multiplied by its second principal
apportionment average daily attendance for that fiscal year.
   (3) Notwithstanding any other provision of law, total limitations
pursuant to this subdivision shall not annually exceed the amount
described in paragraph (3) of subdivision (b) as annually increased
by the cost-of-living adjustments specified in Section 42238.1,
multiplied by the annual statewide percentage growth in total average
daily attendance, measured at the second principal apportionment.
  SEC. 3.  Section 42238.44 of the Education Code is amended to read:

   42238.44.  (a) This section shall be known and may be cited as,
the Fairness in Education Funding Act.
   (b) (1) For <strike> the 2001-02 </strike> <em> any </em> fiscal
year <em> in which an appropriation pursuant to this section is made
through the annual Budget Act </em> , the Superintendent of Public
Instruction shall compute an equalization adjustment for each school
district, so that no district's <strike> 2000-01 </strike> <em> prior
year </em> base revenue limit per unit of average daily attendance
is less than the <strike> 2000-01 </strike> <em> prior year </em>
base revenue limit per unit of average daily attendance above which
fall not more than 10 percent of the total statewide units of average
daily attendance for each category of school district set forth in
subdivision (c).
   (2) For purposes of this section, the district base revenue limit
and the statewide average base revenue limit shall not include any
amounts attributable to Section 45023.4, 46200, or 46201.
   (c) Subdivision (b) shall apply to the following school districts,
which shall be grouped according to size and type as follows:



           District                        ADA
         Elementary ..............    less than 101
         Elementary ..............    more than 100
         High School .............    less than 301
         High School .............    more than 300
         Unified .................    less than 1,501
         Unified .................    more than 1,500

   (d) The Superintendent of Public Instruction shall compute a
revenue limit equalization adjustment for each school district's base
revenue limit per unit of average daily attendance as follows:
   (1) Multiply the amount computed for each school district pursuant
to subdivision (b) by the average daily attendance used to calculate
the district's revenue limit for the current fiscal year.
   (2) Divide the amount appropriated for purposes of this section
for the then current fiscal year by the statewide sum of the amount
computed pursuant to paragraph (1).
   (3) Multiply the amount computed for the school district pursuant
to paragraph (1) of subdivision (b) by the amount computed pursuant
to paragraph (2).
   (e) (1) For the purposes of this section, the <strike> 2000-01
</strike> <em> prior year </em> statewide 90th percentile base
revenue limit determined pursuant to paragraph (1) of subdivision
(b), and the fraction computed pursuant to paragraph (2) of
subdivision (d) for the <strike> 2000-01 </strike> <em> prior year
</em> second principal apportionment, shall be final, and shall not
be recalculated at subsequent apportionments.  The fraction computed
pursuant to paragraph (2) of subdivision (d) shall not, under any
circumstances, exceed 1.00.  For purposes of determining the size of
a school district pursuant to subdivision (c), county superintendents
of schools, in conjunction with the Superintendent of Public
Instruction, shall use school district revenue limit average daily
attendance for the prior fiscal year as determined pursuant to
Section 42238.5 and Article 4 (commencing with Section 42280).
   (2) For the purposes of calculating the size of a school district
pursuant to subdivision (c), the Superintendent of Public Instruction
shall include units of average daily attendance of any charter
school for which the school district is the chartering agency.
   (3) For the purposes of computing the target amounts pursuant to
subdivision (b), the Superintendent of Public Instruction shall count
all charter school average daily attendance toward the average daily
attendance of the school district that is the chartering agency.
  SEC. 4.  Section 44506 of the Education Code is amended to read:
   44506.  (a) The state funding for this article subsequent to the
1999-2000 fiscal year is subject to an appropriation in the annual
Budget Act.  It is the intent of the Legislature that the funding for
the program for the 2000-01 fiscal year be at least equal to the
1999-2000 fiscal year appropriation for Article 4 (commencing with
Section 44490) plus the amount apportioned pursuant to Section 44505.

   (b) A school district that receives funds for purposes of this
article may also expend those funds for any of the following
purposes:
   (1) The Marian Bergeson Beginning Teacher Support and Assessment
System as set forth in Article 4.5 (commencing with Section 44279.1)
of Chapter 2.
   (2) The California Pre-Internship Teaching Program as set forth in
Article 5.6 (commencing with Section 44305) of Chapter 2.
   (3) A district intern program as set forth in Article 7.5
(commencing with Section 44325) of Chapter 2.
   (4) Professional development or other educational activities
previously provided pursuant to Article 4 (commencing with Section
44490) of Chapter 3.
   (5) Any program that supports the training and development of new
teachers.
   (c) (1) The Superintendent of Public Instruction shall determine a
base funding unit rate for the California Peer Assistance and Review
Program for Teachers that is equal to the total amount provided for
the California Mentor Teacher Program in subdivision (b) of Section 6
of Chapter 4 of the Statutes of 1999 for the First Extraordinary
Session, divided by the total number of mentor teachers that the
state calculated the school district is entitled to in the 1999-2000
fiscal year.
   (2) For the 2000-01 fiscal year, and annually thereafter, the
Superintendent of Public Instruction shall apportion to each school
district that certified implementation of the Peer Assistance and
Review Program for Teachers pursuant to subdivision (b) of Section
44505, an amount equal to 5 percent of the prior year count of
certificated classroom teachers employed by the school district,
multiplied by a rate which equals the sum of <strike> (1) the
</strike> <em> the following amounts:
   (A) The </em> base amount per funding unit as calculated in
paragraph (1) of subdivision (c), adjusted annually pursuant to
subdivision (b) of 42238.1 <strike> , and (2) two </strike> <em> .
   (B) Two </em> thousand eight hundred dollars ($2,800) <strike> ;
</strike> <em> , </em> adjusted annually pursuant to subdivision (b)
of Section 42238.1.
   (3) Beginning in the 2001-02, and annually thereafter, the
Superintendent of Public Instruction shall apportion to each school
district that certified implementation of a Peer Assistance and
Review Program for Teachers pursuant to subdivision (d) of Section
44505, an amount equal to 5 percent of the prior year count of
certificated classroom teachers employed by the school district,
multiplied by a rate which equals the sum of <strike> (1) the
</strike> <em> the following amounts:
   (A) The </em> base amount per funding unit as calculated in
paragraph (1) of subdivision (c), adjusted annually pursuant to
subdivision (b) of Section 42238.1 <strike> , and (2) the </strike>
<em> .
   (B) The </em> per mentor teacher unit amount provided to he
district pursuant to subdivision (c) of Section 44505, adjusted
annually pursuant to subdivision (b) of Section 42238.1.
   (4) In paragraphs (2) and (3) of this subdivision, 5 percent of
the certificated classroom teacher employed by the district shall be
rounded to the next whole integer.  <strike>
   (5) If at the end of any fiscal year, an amount of funds available
for purposes of the Peer Assistance and Review Program remain
unallocated, the Superintendent of Public Instruction shall use the
unallocated amount to increase the base funding rate calculated under
paragraph (1) for the succeeding fiscal year. </strike>
  SEC. 5.  Section 44506.5 is added to the Education Code, to read:
   44506.5.  (a) Notwithstanding Sections 44505 and 44506, the
Superintendent of Public Instruction shall reduce the amount of the
apportionment provided to school districts for purposes of this
article by 50 percent.
   (b) (1) If at the end of any fiscal year, an amount of funds
available for purposes of the Peer Assistance and Review Program
remains unallocated, the Superintendent of Public Instruction may
distribute those funds to participating school districts that certify
to the State Board of Education by March 1st of each fiscal year
that the school district has collectively bargained the provisions of
this article and that at least 50 percent of funds received pursuant
to this article in the prior fiscal year were used for purposes set
forth in paragraph (1), (2), (3), or (5) of subdivision (b) of
Section 44506.
   (2) To determine the amount of the apportionment for each school
district that makes the certification specified in paragraph (1), the
Superintendent of Public Instruction shall perform the following
calculations:
   (A) Divide the total amount a certifying school district received
pursuant to subdivision (a) by the total amount apportioned to all
school districts pursuant to subdivision (a).
   (B) Multiply the quotient derived from the calculation performed
pursuant to subparagraph (A) by the total unallocated amount
remaining from the appropriate fiscal year.
   (C) The product derived from the calculation performed pursuant to
subparagraph (B) is the amount of the apportionment the
Superintendent of Public Instruction may make from the unallocated
funds remaining in a fiscal year to a school district making a
certification pursuant to paragraph (1).
   (3) Any apportionment made pursuant to this subdivision shall not
exceed the amount a qualifying school district received pursuant to
subdivision (a).
  SEC. 6.  Section 51725 of the Education Code is amended to read:
   51725.  (a) The High-Tech High School Grant Program is hereby
established to provide <strike> 10 </strike> <em> five </em> one-time
grants to eligible school districts or charter schools for purposes
of establishing new high-tech high schools.
   (b)  As used in this article, "high-tech high school" means a
public comprehensive high school maintained by a school district or
charter school that offers a very rigorous college preparation
curriculum with an emphasis in science, mathematics, and engineering,
and also may include digital arts and media.  Technology shall be
integrated throughout the curriculum and shall be a fundamental tool
for both teaching and learning.  Instruction at a high-tech high
school shall be consistent with the academic content standards
adopted by the State Board of Education and the applicable curriculum
framework content standards adopted by the State Board of Education.
  A high-tech high school may not include a school maintained by the
California Youth Authority, or operated by a regional occupational
center or program, continuation high school, community day school, a
State Special School, distance learning school, or independent study
school.  An adult education program may not be offered at a high-tech
high school.  Nothing in this section prohibits a comprehensive high
school that operates a high-tech high school from having an
affiliation with a regional occupational center or program, but the
regional occupational center or program shall not be eligible for
funding under this article and may not establish a high-tech high
school under this article.
   (c) The Superintendent of Public Instruction shall administer the
application process for the award of grants.  The Superintendent of
Public Instruction, with the approval of the State Board of Education
shall award grants on a competitive basis.  The <em> total </em>
amount of each grant is two million dollars ($2,000,000) <em> , which
shall be awarded over two years </em> .  The award of a grant
requires a local match that is at least equal to the amount of the
grant.  All funds awarded pursuant to this section shall be used
solely for the establishment of high-tech high schools.
Notwithstanding any other provision of law, the Superintendent of
Public Instruction shall not be required to adopt regulations in
order to administer the High-Tech High School Grant Program and
allocate program funds.
   (d) Funding for the purposes of this article is contingent on an
appropriation made in the annual Budget Act or other legislation.
<em> Funding in each year shall be equally divided among schools
awarded grants, with no recipient receiving more than two million
dollars ($2,000,000) in total over the two years. </em>
  SEC. 7.  Section 51727 of the Education Code is amended to read:
   51727.  (a) The Superintendent of Public Instruction shall accept
applications and <strike> award grants in two phases.
   (1) Not </strike> <em> may not award </em> more than five grants
<strike> shall be awarded in the first phase </strike> .
Applications shall be due February 1, 2002.  The Superintendent of
Instruction shall complete the review of applications pursuant to
subdivision (c) of Section 51726 and make awards pursuant to
subdivision (d) of Section 51726 no later than March 31, 2002.  The
proposed high-tech high school for which a school district or charter
school receives funding shall be operational by September 30, 2002.
If the Superintendent of Public Instruction does not receive five
applications that merit funding pursuant to subdivision (c) of
Section 51726, some or all <strike> of the phase one </strike> grants
may be delayed until <strike> the second phase with </strike> <em>
receiving</em> the approval of the State Board of Education.
<strike>
   (2) The remaining grants shall be awarded in the second phase.
Applications shall be submitted by February 1, 2003.  The
Superintendent of Public Instruction shall complete the review of
applications pursuant to subdivision (c) of Section 51726 and make
awards pursuant to subdivision (d) of Section 51726 no later than
March 31, 2003.  The proposed high-tech high school for which a
school district or charter school receives funding shall be
operational by September 30, 2003. </strike>
   (b) The Superintendent of Public Instruction, with the approval of
the State Board of Education, may, upon a showing of good cause and
if necessary, extend any of the following dates:
   (1) The deadline for application submission.
   (2) The date the grant award is to be made.
   (3) The date by which a high-tech high school is to be
operational.
   (c) If a grant recipient fails to make the high-tech high school
operational by the specified date, the Superintendent of Public
Instruction, with the approval of the State Board of Education may
rescind the grant award and award the grant funds to another eligible
grant recipient as determined by the Superintendent of Public
Instruction, with the approval of the State Board of Education.
   (d) If the grant funds awarded pursuant to this article are not
used towards the establishment and implementation of a new high-tech
high school, the Superintendent of Public Instruction shall withhold
an amount equal to the funds the school district or charter school
                                       received pursuant to this
article from the next monthly principal apportionment payment.  <em>
The </em> Superintendent of Public Instruction shall conduct
compliance visits as required to ensure that the funds are used
appropriately.
  SEC. 8.  Section 51729 of the Education Code is amended to read:
   51729.  This article shall remain in effect only until January 1,
<strike> 2003 </strike> <em> 2004 </em> , and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1, <strike> 2003 </strike> <em> 2004 </em> , deletes or
extends that date.
  SEC. 9.  Section 52055.660 is added to the Education Code to read:

   52055.660.  This article shall be implemented only if the annual
Budget Act contains an appropriation for this purpose.
  SEC. 10.  Section 33 of Chapter 891 of the Statutes of 2001 is
repealed.  <strike>
  SEC. 33.  The amount of forty million dollars ($40,000,000) is
hereby appropriated from the Proposition 98 Reversion Account to the
Superintendent of Public Instruction for the purposes of Section
42238.44 of the Education Code. </strike>
  SEC. 11.  The Superintendent of Public Instruction shall report, by
May 1, 2003, to the Assembly Committee on Appropriations, the Senate
Committee on Appropriations, the Assembly Committee on Education,
and the Senate Committee on Education on the status of the grant
program created by Article 3.5 (commencing with Section 51725) of
Chapter 5 of Part 28 of the Education Code.
                                     <br>
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